"So you're telling me you believe in Jesus, as well as Muhammad?" I remember the perplexed look on my Christian friend's face a few years ago. I had dropped a theological bombshell on him in revealing that Jesus was considered by Muslims to be a prophet of God.

"Not only do we believe in Jesus," I replied, pausing for maximum dramatic effect, "we also believe in the Virgin Birth." My friend's eyes widened with surprise, his mouth agape.

Christians, perhaps because they call themselves Christians and believe in Christianity, like to claim ownership of Christ. It thus comes as a huge surprise to many of them - my friend included - to discover that the world's second-largest faith, Islam, also stakes a claim to him.Jesus, or Isa, as he is known in Arabic, is deemed by Islam to be a Muslim prophet rather than the Son of God, or God incarnate. He is referred to by name in as many as 25 different verses of the Quran and described as the "Word" and the "Spirit" of God. No other prophet in the Quran, not even Muhammad, is given this particular honour.

In fact, Islam reveres both Jesus and his mother, Mary (Joseph appears nowhere in the Islamic narrative of Christ's birth). "Unlike the canonical Gospels, the Quran tilts backward to his miraculous birth rather than forward to his Passion," writes Professor Tarif Khalidi, in his fascinating book The Muslim Jesus. "This is why he is often referred to as 'the son of Mary' and why he and his mother frequently appear together." In fact, Mary, or Maryam, as she is known in the Quran, is considered by Muslims to hold the most exalted spiritual position among women. She is the only woman mentioned by name in Islam's holy book and a chapter of the Quran is named after her.

But the real significance of Mary is that Islam also considers her a virgin and endorses the Christian concept of the Virgin Birth. "She was the chosen woman, chosen to give birth to Jesus, without a husband," says Shaykh Ibrahim Mogra, an imam in Leicester and assistant secretary general of the Muslim Council of Britain.

For Muslims, however, the Virgin Birth is not evidence of Jesus's divinity, only of his unique importance as a prophet and a messiah. The Trinity is rejected by Islam, as is Jesus's Crucifixion and Resurrection. The Quran castigates Christianity for the widespread practice among its sects of deifying Jesus (and Mary), and casts the criticism in the form of an interrogation of Jesus by God:

And when Allah saith: O Jesus, son of Mary! Didst thou say unto mankind: Take me and my mother for two gods beside Allah? he saith: Be glorified! It was not mine to utter that to which I had no right. If I used to say it, then Thou knewest it

Muslims cherish and venerate Jesus the prophet – but, I often wonder, are we paying only lip-service to his life and legacy? Where, for example, is the Islamic equivalent of Christmas? Why do Muslims celebrate the birth of the Prophet Muhammad but not that of the Prophet Jesus? "We, too, in our own way should celebrate the birth of Jesus … [because] he is so special to us," says Mogra.

In recent years, the right-wing press in Britain has railed against alleged attempts by "politically correct" local authorities to downplay or even suppress Christmas. Birmingham's attempt to name its seasonal celebrations "Winterval" and Luton's Harry Potter-themed lights, or "Luminos", are notorious examples. There is often a sense that such decisions are driven by the fear that outward displays of Christian faith might offend British Muslim sensibilities, but, given the importance of Jesus in Islam, such fears are misplaced and counter-productive. Mogra, who leads the MCB's interfaith relations committee, concurs: "It's a ridiculous suggestion to change the name of Christmas." He adds: "Britain is great when it comes to celebrating diverse religious festivals of our various faith communities. They should remain named as they are, and we should celebrate them all."

Amid tensions between the Christian west and the Islamic east, I believe a common focus on Jesus could help close the growing divide between the world's two largest faiths. Others agree. "We don't have to fight over Jesus. He is special for Christians and Muslims," says Mogra. "He is bigger than life. We can share him."